In the oil and gas industry, an Interval Control Valve (ICV) is an important tool for managing production challenges from smart wells that use ICVs and real-time sensors for acquiring both down-hole and surface data, such as localized water or gas breakthrough, particularly in multilateral wells and horizontal wells with open-hole completions. The application of smart wells with real-time surveillance does not end in monitoring and diagnosing well performance and generating ICV settings to improve oil recovery, which is commonly referred to as a reactive approach to oil recovery optimization. In recent decades, for example, operators often have debated choosing between the reactive approach and a proactive approach that involves adjusting ICV settings based on forecasted results. The proactive approach is followed by most reservoir engineers who are the custodians of any remaining reserves. The reactive approach is followed by most production engineers who seek to increase daily production. The proactive approach at the field level is the most difficult to justify without clear evidence that it will work. If the reservoir model is not very well history-matched and predictions do not reproduce what the wells are doing today, the reactive approach is preferred. However, the reactive approach sometimes produces undesirable results, such as delayed water or gas influx by choking back part of a well, which can result in water or gas breakthrough and bypassing oil reserves.